FDIC Sets Up Clawback Rules For Failed Bank Execs

Law360, New York (March 15, 2011, 6:18 PM EDT) -- The Federal Deposit Insurance Corp. on Tuesday set out guidelines for bank regulators to claw back money from top executives at failed banks as part of a proposed rule clarifying wind-down procedures for so-called too-big-to-fail financial institutions.

According to the proposed rule, regulators will be charged with determining whether the top leadership of a failed bank worked “with the requisite degree of skill and care” in the days before a failure. If the regulators determine that the actions by the executives — including the CEO, chairman...
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